Events subsequent to December 31, 2016 have been evaluated through the date that these financial statements were issued in order to determine whether any events should be disclosed to keep the financial statements from being misleading. The following events have occurred since December 31, 2016.

Private Placement of Common Stock

On February 10, 2017, the Company sold and issued an aggregate of 32,000 shares of its Common Stock, at a per share price of $6.25, in a private placement to an accredited investor, for which it received gross cash proceeds of $200,000. The investor, John Pappajohn, is a member of the Company's Board.

The private placement was made pursuant to an exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Regulation D thereunder.

The Aspire Capital Equity Transaction

On December 6, 2016, the Company, entered into the Purchase Agreement with Aspire Capital, which provides that, upon the terms and subject to the conditions and limitations set forth therein, Aspire is committed to purchase up to an aggregate of $10.0 million of shares of Common Stock over the 30-month term of the Purchase Agreement. Concurrently with entering into the Purchase Agreement, the Company also entered into the Registration Rights Agreement, pursuant to which the Company maintains an effective registration statement registering the sale of the shares of Common Stock that have been and may be issued to Aspire Capital under the Purchase Agreement. Such registration statement, registering 1,320,000 shares was filed with the SEC and declared effective on February 10, 2016. With this effective registration statement, the Company may now sell Common Stock to Aspire Capital and draw down on the $10.0 million equity line. See Note 1, Nature of Operations—“Aspire Capital Equity Line”, for additional detail. The Company is subject to additional risks. Our risk factors are described under the heading "Risk Factors" in Part I Item 1A and elsewhere in our Annual Report on Form 10-K and in other reports we file with the SEC.